Protect the sterling price you pay for your property
If you are making international payments for an overseas property purchase, you need to be aware of exchange rates and the volatile nature of the currency markets. Of course, the larger the amount of money you are sending, the more important this is.
Foreign exchange rates can change very quickly and movements of 10% or more – in a short space of time – are not uncommon. If you are buying an overseas property, such a market move against you will effectively mean that your property costs 10% more.
Protecting yourself
Moneycorp offers a variety of tools to help you avoid being caught out by exchange rate movements:
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A forward contract allows you to lock into an exchange rate for a period of up to two years, meaning that if exchange rates do move against you, you are locked into a more favourable exchange rate.
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A foreign exchange option provides you on the right – but not the obligation – to buy or sell foreign currencies at a known exchange rate on a fixed future date, providing a guaranteed future rate of exchange.
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Market orders can help you get the most for your money if you are not restricted by payment deadlines.
You can of course do nothing and just take the rate of the day when you need to send your money. This is called a spot contract and in opting for this, you take the risk that exchange rates move against you.
Our team will be on hand to explain everything to you in jargon-free terms, so you can make an informed decision about the best solution for you.
Foreign exchange options can carry a high level of risk to your capital and are not suitable for everyone. You should seek independent advice if necessary.
TTT Moneycorp Limited is authorised and regulated by the Financial Services Authority in the conduct of designated investment business and provision of payment services.